FTSE Weakens on Signs of Global Slowdown: Spread Betting UK
Financial Market Comments from Will Hedden, Sales Trader, IG Index.
In early trading the FTSE 100 has reacted poorly to further signs of global economic slowdown.
At 10.00am (London time) the UK’s blue chip index was down 7.69 points to 5245.83 following worrying, though widely expected, numbers from the US and China overnight.
The Fed cut its GDP forecast from 3.2-3.7% to 3-3.5%, while Chinese GDP figures revealed that second-quarter growth had slowed to 10.3% compared with Q1’s encouraging 11.9%.
No prizes for guessing who felt the effects of the news from China the hardest. Miners Rio Tinto, Vedanta Resources, BHP Billiton, Xstrata and Kazakhmys all suffered as investors got twitchy about dwindling demand for resources.
While bankers moped around the bottom of the table along with their heavyweight mining buddies, the world’s largest credit-checking company, Experian, gained 2.60% to top the index after it announced that total first-quarter revenues had risen 7%.
It’s the tech sector’s turn to come into focus later today, with updates from AMD and Google due out this afternoon.
Forecasts for the latter have not been encouraging; at least three analysts have cut estimates and Wall Street is decidedly cautious about prospects for the internet giant.
This is particularly true in relation to its cost-per-click advertising business and comes despite the company having beaten revenue expectations in five of the previous seven quarters.
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Good Luck!
DB
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
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